Mission Capital Advisors Arranges $21 Million
Acquisition and Construction Loan for Chelsea Luxury Condo Conversion
Capital advisor structures non-recourse financing at competitive pricing
NEW YORK (July 20, 2018) – Mission Capital Advisors announced that its Debt and Equity Finance team arranged $21 million of non-recourse acquisition and construction financing for 214-216 West 15th Street, a luxury six-unit condo conversion in Chelsea. The Mission Capital team of Raymond Salameh, Ari Hirt, Steven Buchwald, and Lexington Henn represented developer Holliswood Development in structuring the loan from a Philadelphia-based debt fund.
For Holliswood, the competitively-priced loan fills a sizable portion of the project’s $29-million capital stack. The loan funds both the acquisition of the building and the subsequent construction costs when the project is permit-ready. With construction financing in hand, the developer plans to capitalize on the vitality of the Chelsea neighborhood and convert the former nursery school building to six luxury condominiums with best-in-class amenities. Once complete, the residences will feature 10-foot ceilings, private balconies, and well-appointed, top-of-the-line kitchens.
Holliswood purchased the building — which had functioned as a nursery school since 1902 — from the Archdiocese of New York, which led to an approvals process that required sign-off from the New York State Attorney General, the Archdiocese, and the Vatican.
Located near the border of Greenwich Village and Chelsea, the property is located in one of Manhattan’s most vibrant areas, providing convenient access to a range of shopping, dining and nightlife options.
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York, Florida, Texas, California and Alabama. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.www.missioncap.com.
Arden Credit Lends $21Mln for Development of Upscale N.Y. Condos
July 20, 2018
Arden Credit Fund has provided $21 million of financing to fund the acquisition and redevelopment of 214-216 West 15th St., a six-unit residential condominium property in Manhattan’s Chelsea neighborhood.
The non-recourse loan, arranged by Mission Capital Advisors, funded Holliswood Development’s $12.65 million purchase of the property, the former Nazareth Nursery, from the Archdiocese of New York. The property had operated as a nursery school since 1902. In addition, the loan will allow Holliswood of New York and its partner, Firm Capital Corp. of Toronto, to redevelop the two 25-foot wide buildings into six luxury condo units that will have 10-foot ceilings, private balconies and high-end kitchens. The development cost is estimated at $29 million
Arden Credit Fund is an alternative-lending vehicle sponsored by Arden Group of Philadelphia. The investment manager was aiming to raise $150 million for the vehicle, which funds mezzanine loans and other relatively short-term lending instruments against commercial real estate properties.
Mission Capital Advisors’ debt and equity finance team has arranged $21 million of non-recourse acquisition and construction financing for 214-216 W. 15th St., a luxury six-unit condominium conversion in Chelsea. The Mission Capital team of Raymond Salameh, Ari Hirt, Steven Buchwald, and Lexington Henn represented Holliswood Development in structuring the loan from a Philadelphia-based debt fund.
For Holliswood, the competitively-priced loan fills a sizable portion of the project’s $29-million capital stack. The loan funds both the acquisition of the building and the subsequent construction costs when the project is permit-ready.
Holliswood purchased the building, which had functioned as a nursery school since 1902, from the Archdiocese of New York, necessitating approvals from the state Attorney General, the archdiocese and the Vatican. With construction financing in hand, the developer plans to capitalize on the vitality of the Chelsea neighborhood and convert the former nursey school building to six luxury condos.
Mission Capital Advisors Marketing Lake City Commons,
90,000-Square-Foot Retail Property in Atlanta Suburb
With occupancy of 98 percent, shopping center will offer investors a stable, income-producing asset
LAKE CITY, Ga. (July 9, 2018)— Mission Capital Advisors, a leading national real estate capital markets solutions firm, today announced that its Asset Sales Group is marketing Lake City Commons, a 91,494-square-foot community retail center located at 5656 Jonesboro Road in Lake City, Georgia. The Mission Capital team of Will Sledge, Kyle Kaminski and Tom Karras is marketing the property on behalf of the seller, a CMBS special servicer. The property will be auctioned on the RealINSIGHT Marketplace, with the bidding window opening on July 23 and closing on July 25.
Constructed in 1998, the property boasts a diverse array of tenants, including anchor tenant Kroger — which is signed to a triple net lease through 2024— as well as Dollar Tree, H&R Block, Metro PCS and Pizza Hut. In addition to occupying 69 percent of the property’s leasable area, Kroger also intends to construct and operate an on-site fuel center, which would generate additional traffic to the property.
The property has modest near-term rollover, and several of the tenants with expiring leases are currently in the midst of negotiating renewals.
“In today’s challenging market, many buyers are looking to invest in grocery-anchored shopping centers, which provide much more stability than conventional retail assets,” said Kaminski. “Kroger has been at this property since its opening, and the grocer has performed successfully for a full two decades. With Kroger investing its own capital in the on-site gas station, the credit tenant is clearly demonstrating its plans to remain at the property for the long term.”
The property is located within 14 miles of downtown Atlanta, positioning it in the country’s ninth most populous metropolitan area.
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York, Florida, Texas, California and Alabama. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.www.missioncap.com.
About RealINSIGHT Marketplace
RealINSIGHT Marketplace is one of the nation’s leading online due diligence and auction bid platforms. RealINSIGHT provides local, regional, national, and international investors the opportunity to review and bid for loan and REO assets on an individual basis. For more information, visit marketplace.realinsight.com.
Mission Capital Advisors Marketing 24,500-Square-Foot Two-Building Office Property in Phoenix
Asset presents investors with opportunity to add significant value through lease-up
PHOENIX (May 31, 2018) — Mission Capital Advisors, a leading national real estate capital markets solutions firm, today announced that its Asset Sales Group is marketing 2030 E. Osborn Road, a 24,414-square-foot two-building office complex in Phoenix. The Mission Capital team of Will Sledge, Kyle Kaminski, and Tom Karras is marketing the property on behalf of the seller, a CMBS special servicer. The property will be auctioned on the RealINSIGHT Marketplace, with the bidding window opening on June 19 and closing on June 21.
The garden-style property contains two office buildings, one of which is approximately 21,000 square feet, while the other measures approximately 3,400 square feet. The former building is vacant, while the latter recently became fully occupied by professional services firm MVM, Inc., who signed a five-year lease. Built-in 1983 and 2000, respectively, the buildings were fully occupied by an insurance agency whose lease expired in December 2017.
“With its strong location within Phoenix’s Midtown/Central office submarket, this is a very attractive property that will draw interest from established local owner-operators or buyers looking to break into the Arizona market,” said Sledge. “While the property is currently largely vacant, there are a number of potential tenants actively considering leasing a portion or the entirety of the vacant space. This offering will provide investors with the opportunity to buy a well-situated Class B office asset and add value in the short-term through rapid lease-up.”
Located in northeast central Phoenix, the property is proximate to midtown and downtown Phoenix as well as several affluent suburban areas. The asset benefits from the continued growth of the Phoenix metropolitan area, one of the fastest growing metros in the United States.
“The 21,000 square feet of availability can be easily subdivided for two or three tenants, so the buyer will have a good deal of flexibility as they lease up the space,” said Kaminski. “The property is in close proximity to both the VA Hospital and Children’s Hospital and within blocks of AZ-51, the primary highway arterial bisecting Phoenix, providing convenient access to much of the metropolitan area.”
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York, Florida, Texas, California and Alabama. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.www.missioncap.com.
About RealINSIGHT Marketplace
RealINSIGHT Marketplace is one of the nation’s leading online due diligence and auction bid platforms. RealINSIGHT provides local, regional, national, and international investors the opportunity to review and bid for loan and REO assets on an individual basis. For more information, visit marketplace.realinsight.com
Mission Capital Structures a $23-Million JV Equity Investment for Largo’s Acquisition of Williamsburg Development Site
Buyer plans to develop a 105,000 square foot mixed-use property with luxury condos, office, retail and an automated parking garage
NEW YORK — Largo and Mission Capital Advisors announced that Mission Capital’s Debt and Equity Finance Group has structured a joint venture between Largo and First Atlantic Real Estate for the $25-million acquisition of 215 North 10th Street, an 18,000-square-foot corner development site in the North Williamsburg section of Brooklyn, New York. This North Williamsburg deal is the first investment that First Atlantic and Largo have partnered on and Largo’s ninth deal in Williamsburg. The Mission Capital team of Jordan Ray, Ari Hirt, Steven Buchwald and Jamie Matheny worked on structuring First Atlantic’s $23-million equity investment and has also been engaged to arrange the construction financing.
The JV has also purchased inclusionary air rights allowing for the development of a 105,000-square-foot, seven-story mixed-use property with approximately 31 luxury condominiums, 45,000 square feet of office, 7,000 square feet of retail and 85 parking spaces. Construction is expected to begin in the second quarter of this year.
“Largo is one of the most active developers in New York right now and really earned their stripes in Williamsburg early in this cycle, with this project being their ninth in the neighborhood. They know what product the market needs and can execute.” said Ray. “Raising JV equity for ground-up construction right now is challenging, but we are intimately familiar with the demand in the local market and were able to demonstrate that to First Atlantic. There really aren’t very many options for growing families to expand in north Brooklyn right now. There is a whole market of buyers who have lived locally and don’t want to leave the neighborhood because units that suit their needs don’t exist. Not only do they want to live in Williamsburg, but they want to work there as well, which has created a big demand for quality office space. Largo and First Atlantic saw a need and will fill it.”
About Largo
Largo is a private real estate development and investment firm founded by Nissim Ben-Nun and Nicholas Werner. Largo specializes in the acquisition, development, and operation of luxury multifamily and mixed-use real estate in New York City, and is currently heavily active in the Manhattan and Brooklyn markets.
Since its founding in 2009, Largo has successfully developed over 1.4 million square feet of luxury rental apartments, condominiums and mixed-use properties.
In addition, Largo provides construction management services for many of its projects through its construction management operation Largo Construction.
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York City, Florida, Texas, California, and Alabama. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across debt, mezzanine, and JV equity placement; commercial and residential loan sales; and loan portfolio due diligence and valuation. Mission Capital Advisors is extremely active in arranging financing for office, industrial, multifamily, retail and self-storage properties across the country. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of financing and loan sale transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.www.missioncap.com.
Iconic Richland, Washington Office Property Offers Investors Significant Value-Add Potential
RICHLAND, Wash. (Feb. 26, 2018) — Mission Capital Advisors, a leading national real estate capital markets solutions firm, today announced that its Loan and Asset Sales Group is marketing the leasehold interest in Tri-Cities Professional Center, a 160,526-square-foot, two-building office property in Richland, Washington. Will Sledge and Kyle Kaminski of Mission Capital are marketing the property on behalf of the seller, a CMBS special servicer, while Derrick Stricker of NAI Tri Cities will serve as the showing broker. The property is being marketed on RealINSIGHT Marketplace. The bidding window for the property opens on March 6 and closes on March 8.
The Class-B property includes one five-story office building and one seven-story office building, which have an aggregate occupancy rate of 20 percent. The 9.74-acre property is subject to a ground lease with the city of Richland, which expires in 2042 and has two 15-year extension options.
“The Tri-Cities Professional Center is well-situated within the Richland CBD and poses a very intriguing opportunity for value-add investors,” said Sledge. “The city, which currently owns the leased-fee interest, will likely be open to selling its interest to the buyer, and the property is expected to sell at a significant discount to replacement cost. There’s a great deal of upside in this offering and it will be particularly attractive to local property owners who already have a working relationship with the city.”
The property is located within walking distance of the Uptown Shopping Center, which features a variety of dining and retail options.
Added Kaminski: “We also expect to receive interest from opportunistic investors seeking to convert the property into residential or hospitality use. Its prime location near several major roadways makes it easily accessible to the entire Tri-Cities metro, which has a population of approximately a quarter-million people. With a seller eager to divest of the property for a reasonable price, buyers have the unique ability to acquire an asset with significant potential at a very low basis.”
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York, Florida, Texas, California and Alabama. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.www.missioncap.com.
Director Beau Williams and Vice President Raymond Salameh Join National Capital Markets Advisory
Mission Capital Advisors today announced the hiring of Beau Williams as director and Raymond Salameh as vice president in the firm’s Debt and Equity Finance Group. Both professionals will be based in Mission’s New York City headquarters, and will be responsible for the origination, structuring and placement of commercial real estate capital on behalf of owners, investors, developers, family offices and private equity firms nationwide as well as assisting on select asset sales opportunities. Williams and Salameh will structure financing and asset sales for the firm’s clients across the hospitality, retail, office, multifamily and industrial sectors.
“Beau’s hospitality finance experience throughout his career was extremely attractive to us as we look to build on our strengths and continue expanding our team,” said Jordan Ray, principal of Mission Capital’s Debt & Equity Finance Group. “We look forward to leveraging Beau’s experience to remain a frontrunner in this space.”
Prior to this position, Williams was with Meridian Capital Group, where he focused on hotel debt and equity. In his time at Meridian, Williams executed over $200 million in hotel financings. Earlier in his career, Williams served as a director with both Wyndham Hotel Group and Northcott Hospitality. He graduated from New York University with a Bachelor of Arts in Communications.
“Mission Capital’s culture is extremely unique, and I knew from the very start that my input would be valued,” said Williams. “I consider Mission somewhat of an anti-brokerage, an organization where each individual is recognized as a valued member of a unified team. I’m eager to work alongside the best and brightest in the industry to secure capital for some of the most innovative hospitality projects out there.”
Salameh was formerly a senior associate at HKS Capital Partners, where he focused on originating and structuring real estate capital for corporate clients, real estate developers and investors. Over the course of his career, he closed approximately $160 million of capital across several asset classes. Salameh graduated from Binghamton University’s School of Management with a Bachelor of Science in Finance and Management.
“Mission Capital has a reputation as a collaborative, technology-driven debt and equity brokerage, and I was eager to join this growing platform and help contribute to their expansion,” added Salameh.
Under the leadership of Ray and Mission Capital Founder and Principal David Tobin, Mission Capital’s Debt and Equity Finance Group has expanded within the past few years from a two-person team into a national mortgage and equity powerhouse with 25 professionals, approximately $2 billion in annual volume, and activity in every major market.
“Both Beau and Raymond are exactly the type of professionals that we look for – extremely driven and the best at what they do,” said Tobin. “The market expertise they bring to the table will be a major asset for Mission as we continue our national expansion.”
Industry Veteran Brings Nearly 15 Years of Experience to his New Position
Mission Capital Advisors today announced the hiring of Daniel O’Donnell as managing director of sales and trading. Based in Mission Capital’s Dallas office, O’Donnell is responsible for sourcing, evaluating, structuring and executing the sale of performing and non-performing loans and commercial real estate assets, as well as sourcing debt and equity placement opportunities.
“Dan’s extensive background aligned perfectly with Mission Capital’s target growth areas and quite frankly, we would rather work alongside Dan then compete with him,” said David Tobin, principal of Mission Capital Advisors. “We’re confident that he has the right set of skills to elevate our loan and real estate sales practice, bringing immediate value to our client base.”
Prior to joining Mission Capital, O’Donnell was a managing director with Holiday, Fenoglio, Fowler L.P. (HFF) in the firm’s National Loan Sales Group. He was also formerly vice president of U.S. acquisitions for FirstCity Financial Corporation, where he was responsible for individual asset and portfolio due diligence, including credit quality evaluation, real estate valuation and business collateral valuation. He was also involved in the ongoing credit decisions related to the restructuring, servicing and settlement of acquired loans and properties. During his time at FirstCity, O’Donnell was involved in the acquisition and management of more than $2.1 billion of commercial loans.
“Mission Capital has exceptional diligence systems and portfolio valuation capabilities it utilizes for clients like the FDIC, the Federal Home Loan Bank system and for private sector banks, which will expand my set of tools available to customers,” said O’Donnell. “As Mission Capital continues to grow, I’m thrilled to join a firm that demonstrates professionalism that is second to none and welcome the opportunity to further expand the company’s activity in loan and real estate sales.”
O’Donnell also previously worked for Bank of America in its Private Wealth Real Estate Group where he was in charge of a portfolio of approximately 625 properties across the Southeast. He received his Bachelor of Business Administration from Baylor University with an emphasis on finance and real estate.
Interim financing will enable developer to complete construction, ramp property occupancy
Mission Capital Advisors today announced that its Debt and Equity Finance Group structured $18.5 million of non-recourse bridge financing for The Falls, a 116-unit luxury apartment community located in Hudson, New York. The loan, which was provided by Walker & Dunlop, will retire the existing construction loan and will provide the sponsor with additional proceeds to complete construction of the community. The Mission Capital team of Rob Beyer, Ari Hirt, Steven Buchwald, Alex Draganiuk, David Behmoaras and Justin Hunt secured the financing on behalf of JMS Construction.
JMS acquired the 22-acre property – formerly the Greenport Elementary School – in 2015, with plans to redevelop it into the region’s premier luxury apartment community. When complete, the community will comprise four interconnected buildings, featuring indoor and outdoor pools, a full fitness center, walking trails, wine cellar, a spinning/yoga studio, a 30-seat movie theater, event space and a first-class spa complete with sauna, steam room and salt room.
“The Falls will be the premier residential community in the region; however, the lack of comparable product was something of a challenge,” said Beyer. “In recent years, Hudson has become a popular weekend retreat for New Yorkers, and many empty nesters have begun eyeing the area as a potential relocation spot because of its vibrant arts and culture scene and the accessibility it offers to New York City and Albany. By stressing the area’s increasing allure, we were able to attract numerous non-recourse bids for the sponsor, ultimately securing an attractive loan from Walker & Dunlop.”
Added Hirt: “There is a considerable amount of bridge capital in the market, and we were able to communicate the project’s short path to stabilization, which enabled us to generate strong lender interest. The sponsor was looking for interim financing as they complete construction and ramp up occupancy, and we structured a favorable deal with Walker & Dunlop that will enable JMS to secure a permanent loan once the property is stabilized.”
JMS is a family-owned real estate developer and owner based in Hudson. The firm owns nine apartment properties in the area, including two in Hudson, and will oversee The Falls’ leasing and management. Notably, the company’s corporate office is located on-site at The Falls.
Mission Capital Advisors has a strong pipeline of activity and is extremely active in arranging financing for office, industrial, multifamily, retail and self-storage properties across the country.
Mission Capital Advisors secures $18.5M for The Falls in Hudson, NY
The loan, which was provided by Walker & Dunlop, will retire the existing construction loan and will provide the sponsor with additional proceeds to complete construction of the community.
The Mission Capital team of Rob Beyer, Ari Hirt, Steven Buchwald, https://www.missioncap.com/team/?member=adraganiuk, David Behmoaras and https://www.missioncap.com/team/?member=jhunt secured the financing on behalf of JMS Construction.
JMS acquired the 22-acre property – formerly the Greenport Elementary School – in 2015, with plans to redevelop it. When complete, the community will comprise four interconnected buildings, featuring indoor and outdoor pools, a fitness center, walking trails, wine cellar, a yoga studio, movie theater, event space and a first-class spa complete with sauna, steam room and salt room.
The loan, which was provided by Walker & Dunlop, will retire the existing construction loan and will provide the sponsor with additional proceeds to complete construction of the community.
JMS acquired the 22-acre property – formerly the Greenport Elementary School – in 2015, with plans to redevelop it. When complete, the community will comprise four interconnected buildings, featuring indoor and outdoor pools, a fitness center, walking trails, wine cellar, a yoga studio, movie theater, event space and a first-class spa complete with sauna, steam room and salt room.
National Advisory Firm Procured Equity Partner for ABC Properties for New Acquisition Following the Sale of $25 Million Skyview-on-the-Hudson Debt to ABC in 1Q 2017
Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged approximately $20 million of equity financing for the acquisition of 146 rent-regulated condominiums at 733 Amsterdam Avenue, a luxury residential property in Manhattan. Jason Parker and Jeff Granowitz represented ABC Properties in bringing in a majority equity partner to facilitate the transaction with seller Starrett Corp. Mack Real Estate Credit Strategies also provided the buyers with a $55-million acquisition loan.
Constructed in 1971, the property — which is also identified as 175 West 95th Street — is a 27-story, 229-unit multifamily building. In 2015, the seller converted the building to condominiums and embarked on a significant capital improvements campaign, including refreshes to the entryway, terraces and common areas. With these enhancements, the property has been transformed into a premier luxury residence, which also features a 24-7 doorman/concierge, a newly-built fitness center, a children’s play space and a lounge.
ABC’s plans for the property include additional capital improvements to both common areas and apartment interiors.
“Our client, Myles Horn of ABC Properties, was seeking to acquire this well-appointed property with significant upside, and we were able to run an exclusive JV equity process in a very short timeframe to bring in a partner that would enable him to move forward with the transaction,” stated Granowitz.
In a separate transaction acquired by ABC Properties in the first quarter of 2017, Mission Capital advised the seller of the $25 million non-performing loan secured by the co-op shares relating to 262 apartments at Skyview on the Hudson in Riverdale, NY.
“Mission had a great experience with ABC on both transactions,” added Parker. “Myles and ABC have consistently been able to execute their value-add business plan and unlock the hidden potential of condominium properties. This is a trophy-type property in one of New York’s most attractive neighborhoods, and Myles recognized the significant potential that this condo package presented.”
Property with significant in-place cash flow poised for re-positioning
Mission Capital Advisors, a leading national real estate capital markets solutions firm, today announced that its Loan and Asset Sales Group is marketing 613,809 square feet of retail space at the Chesapeake Square Mall in Chesapeake, Virginia. The offering comprises the fee simple and leasehold interests in nearly the entirety of the mall, including four anchor stores and all of the property’s in-line space. Michael Britvan, Will Sledge, Adam Grant, and Don Pavlov of Mission Capital are marketing the property on behalf of the seller.
The entire mall totals 760,420 square feet and contains approximately 100 stores, restaurants and kiosks in addition to six anchor spaces and a 10-unit food court. Four of the six anchor spaces are included in the offering, with tenants including Burlington Coat Factory and J.C. Penney. The other two anchor spaces are independently owned and occupied by Target and Cinemark XD. Other prime tenants include Foot Locker, Bath & Body Works, Kay Jewelers, Lids and Mrs. Fields. Overall, the offered space is 58-percent occupied.
“The asset, which retains a base of strong tenants, presents a unique opportunity to make use of a well-located property in an affluent metropolitan area that is experiencing rapid growth,” said Britvan.
The property, which was most recently renovated in 1999, is a single-level enclosed mall that opened in October 1989. Featuring ample parking, the center is conveniently located off I-664 at the intersection of Portsmouth Boulevard and Taylor Road.
Recently named one of America’s Top 50 “Best Cities to Live” by 24/7 Wall Street, Chesapeake is a part of the greater Hampton Roads MSA, which has a population in excess of 1.7 million and is home to multiple Fortune 500 companies, as well as several major military institutions and bases.
“In addition to being one of the busiest port cities in the world, the immediate submarket surrounding the mall includes affluent suburbs along Portsmouth Boulevard,” added Britvan. “With its in-place cash flow and potential for redevelopment we expect to see a lot of interest in this asset.”
Mission Capital Tapped to Sell Chesapeake Square Mall
July 28. 2017
The following story has been edited to reflect that Torchlight Loan Services is now special servicer for the CMBS transaction.
Commercial Real Estate Direct Staff Report
Torchlight Loan Services has put the Chesapeake Square Mall, which it took through foreclosure roughly a year ago, on the sales block.
The New York special servicer has hired Mission Capital Advisors to market the Chesapeake, Va., property. It has started distributing marketing material to prospective investors and has scheduled an Aug. 15 call for offers. It’s aiming to complete a sale by mid-September.
The 760,420-square-foot shopping center is anchored by a Target and Cinemark, both of which own the spaces they occupy, as well as Burlington Coat Factory and JCPenney. Macy’s and Sears had been anchors, but both shuttered their stores, crippling the property’s ability to retain tenants. As a result, occupancy is now only 58.4 percent. That compares with an 81 percent occupancy level in 2014, when the property generated $5.4 million of cash flow, according to servicer data compiled by Trepp LLC….
Chesapeake Square Mall ownership to evaluate bids to buy the mall
August 17, 2017
Chesapeake Square has received enough interest from potential buyers that it will take some time to evaluate the bids before one is chosen, according to the firm marketing the mall.
Bids were due Aug. 15 with an expectation that the highest bidder would be known the next day.
Michael Britvan, with New York-based Mission Capital Advisors, said Thursday he expects the evaluated bids will be presented to the mall’s ownership late next week before a final round of bidding. The buyer, after entering into a contract and due diligence, may not be made public for at least a month, Britvan said.
About 44 members of the local film industry signed a petition prior to the deadline in hopes of stopping the sale to discuss converting the mall into a sound stage.
A proposed project for senior residents in Chesapeake Square has been retooled for a different property in the same area.
Marlyn Development Corp. submitted a proposal to the city of Chesapeake late last year for a senior living retirement community at the former site of the Chesapeake Square Mall movie theaters, according to Grady Palmer, a Williams Mullen attorney representing the Virginia Beach-based developers.
City Council voted unanimously to pull the application at the request of the developers on July 12. The mall was recently put up for sale by the Loan and Asset Sales Group of Mission Capital Advisors, which factored into the decision.
“My understanding was that they were going to try and finalize the agreement to have it on the perimeter of the mall, instead of the middle of the parking lot,” said Councilman Roland Davis.
The site owned by Economic Development Authority would have created difficulties for potential mall developers and for residents navigating the parking lot, Davis said.
“It was in the center of the parking lot of the mall, which was not really the best location,” He said. “Not only for the residents but for future commercial possibilities.”
The proposal outlines a 160-unit apartment complex for residents ages 62 and older, as well as a beauty salon, a business center, garden plots and dog park. Palmer said the developers have decided to relocate their proposal for the adjacent, 9.4-acre Russel property owned by Bradshaw Harbor LLC.
“I think that for the public safety for the residents and for economic development, having it on the perimeter is a much better solution,” Davis said. “Otherwise it’s a really good project.”
Palmer said he expects the project to be resubmitted to the Planning Commission this November or December.
National Advisory Firm Arranges Strong Loan for Newly Constructed Hotel
Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged $15.26 million of acquisition financing on behalf of Midas Hospitality for the purchase of the newly constructed Staybridge Suites Houston – Medical Center, a 120-key extended stay hotel located at 9000 South Main Street in Houston, Texas. The Mission Capital team of Philip Justiss, Alex Draganiuk, and Lexington Henn structured the recourse loan from IBERIABANK.
The flagged hospitality asset opened in January 2017, and is ideally situated in the Texas Medical Center submarket, one of Houston’s strongest submarkets. Its location near the NRG Park convention center, NRG Stadium, Rice University, and the Texas Medical Center – which contains the world’s largest cancer and children’s hospitals – assures the area of a consistent flow of commercial, sports, academic, and medical visitors.
“As a rare new hotel in this area of Houston, the Staybridge Suites is a very attractive asset, but the property’s lack of operating history was a challenge for some lenders,” said Justiss. “Additionally, with the struggling oil market, there are some capital providers who are generally limiting their exposure to Houston. Despite these challenges, we were able to secure interest from a wide range of lenders and provide the sponsor with both recourse and non-recourse options from banks, hedge funds, and debt funds. IBERIABANK was the right choice for a number of reasons, but the determining factors were that they understood the sponsor’s financial needs, their business plan, and the asset, which is in their backyard.”
“The quality of this hotel is unquestionable, and we have complete confidence that its best-in-class amenities and prime location will attract a steady stream of visitors,” said Midas’ Co-Founder, J.T. Norville. “We were also able to negotiate and structure a mutually beneficial long-term agreement with the IHG brand, one of our three preferred brands across our portfolio.”
“Midas is exactly the type of well-capitalized, talented sponsor that IBERIABANK looks to cultivate and serve as we grow our high-quality loan portfolio,” said Robert Martin, Senior Vice President for IBERIABANK. “Working with Mission was a pleasure. Their streamlined due diligence and closing process was key in facilitating the quick acquisition financing that this purchase required.”
The Staybridge Suites-franchised property caters to long-term travelers; internationally, nearly 60 percent of Staybridge Suites guests stay for visits of five or more nights. The hotel features a range of conveniences including a fitness center, barbecue grills, and an outdoor pool. In-room amenities include 42-inch cable TVs, as well as fully-equipped kitchens with cooktop stoves, full-sized refrigerators, and dishwashers.
Added Draganiuk: “The sponsor is a very sophisticated hotel operator, with the unique ability to judiciously scale corporate growth and ramp occupancy at their properties. They had been looking to invest in the Houston market for several years, and this well-located asset will be a very strong addition to their growing portfolio. We met with the sponsors, Robert and the whole IBERIA team in Houston, and they were great. They are a great fit for Midas, and we hope to close more deals with them in the future, with Midas, as well as our other clients.”
Midas Hospitality is a hospitality-focused commercial real estate investment and management firm with a portfolio currently comprising 30 hotels and more than 2,500 keys. With properties in the Midwest and Southeast, St. Louis-based Midas Hospitality has quickly become one of the premier hospitality management groups in the region.
IBERIABANK started in 1887, in New Iberia, Louisiana. For 130 years, it has focused on growth and a commitment to the community. Today, the bank continues that dedication by meeting the needs of its clients through comprehensive financial services which include Retail, Commercial, Business Banking, Private Banking, and Mortgage. Its commitment to its clients affords the bank the opportunity to provide services through an extensive network of bank locations throughout the Southeast. Through its market-centric approach, the bank is able to create, foster, and preserve client and community relationships at a local level.
Mission Capital Advisors is extremely active in arranging financing for hotel, office, industrial, multifamily, retail, and self-storage properties across the country. In recent months, the firm has arranged loans for a Midas-owned hotel property in South Carolina, as well as other hospitality assets in California, Florida, Illinois, New York, Texas, and Washington.
July 19, 2017
HOUSTON—Mission Capital Advisors has arranged a $15.26 million acquisition loan on behalf of Midas Hospitality to purchase the newly constructed Staybridge Suites Houston–Medical Center, a 120-key extended stay hotel. The Mission Capital team structured the recourse loan from IBERIABANK.
The flagged property opened in January 2017, and is situated in one of Houston’s strongest submarkets—the Texas Medical Center. The hotel’s location near the NRG Park convention center, NRG Stadium, Rice University, and the Texas Medical Center—home of one of the world’s largest cancer and children’s hospitals—assures the area of a consistent flow of commercial, sports, academic, and medical visitors.
“As a rare new hotel in this area of Houston, the Staybridge Suites is a very attractive asset, but the property’s lack of operating history was a challenge for some lenders,” said Justiss. “Additionally, with the struggling oil market, there are some capital providers who are generally limiting their exposure to Houston. Despite these challenges, we were able to secure interest from a wide range of lenders and provide the sponsor with both recourse and non-recourse options from banks, hedge funds, and debt funds. IBERIABANK was the right choice for a number of reasons, but the determining factors were that they understood the sponsor’s financial needs, their business plan, and the asset, which is in their backyard.”
“The quality of this hotel is unquestionable, and we have complete confidence that its best-in-class amenities and prime location will attract a steady stream of visitors,” said Midas’ Co-Founder, J.T. Norville. “We were also able to negotiate and structure a mutually beneficial long-term agreement with the IHG brand, one of our three preferred brands across our portfolio.”
“Midas is exactly the type of well-capitalized, talented sponsor that IBERIABANK looks to cultivate and serve as we grow our high-quality loan portfolio,” said Robert Martin, Senior Vice President for IBERIABANK. “Working with Mission was a pleasure. Their streamlined due diligence and closing process was key in facilitating the quick acquisition financing that this purchase required.”
The Staybridge Suites franchise caters to long-term travelers—internationally, nearly 60 percent of Staybridge Suites guests stay for visits of five or more nights. The hotel features a range of conveniences including a fitness center, barbecue grills, and an outdoor pool. In-room amenities include 42-inch cable TVs, as well as fully-equipped kitchens with cooktop stoves, full-sized refrigerators, and dishwashers.
Added Draganiuk: “The sponsor is a very sophisticated hotel operator, with the unique ability to judiciously scale corporate growth and ramp occupancy at their properties. They had been looking to invest in the Houston market for several years, and this well-located asset will be a very strong addition to their growing portfolio. We met with the sponsors, Robert and the whole IBERIA team in Houston, and they were great. They are a great fit for Midas, and we hope to close more deals with them in the future, with Midas, as well as our other clients.”
Midas Hospitality’s portfolio now comprises 30 hotels and more than 2,500 keys throughout the Midwest and Southeast. Mission Capital Advisors has also recent arranged loans for a Midas-owned hotel property in South Carolina, as well as other hospitality assets in California, Florida, Illinois, New York, Texas, and Washington.
Mission Capital Refinances Existing Debt on Fully-Occupied, Recently Upgraded Industrial Property
Mission Capital Advisors has arranged an $18-million non-recourse loan for Ashley Capital to refinance the Interchange Business Center, a 792,000-square-foot industrial property strategically located on a 55-acre site in La Vergne, Tennessee. Mission Capital’s team of Gregg Applefield, Alex Draganiuk, Lexington Henn, and Eugene Shevaldin represented the sponsor in arranging the loan.
In 2014, New York City-based Ashley Capital purchased the property from Whirlpool, which had used the property to manufacture KitchenAid appliances. After acquiring the largely vacant property, Ashley Capital made large-scale renovations, replacing the roof, incorporating additional dock doors, upgrading the building’s heating and cooling, completing the construction of office spaces and repainting the entire property.
This repositioning, coupled with the property’s convenient access to the area’s major freeways, enabled Ashley to attract numerous new tenants and bring the Interchange Business Center to full occupancy. Current tenants include Penske Logistics, Amer Sports Company, Singer Sewing Company, and Fulfillment Supply Innovation.
“Given the successful turnaround of the property and the sponsor’s track record, we received numerous competitive offers from lenders, and ultimately structured a very favorable long-term deal with fantastic terms. We were even able to negotiate the ability to upsize the loan on multiple occasions down the road, if desired,” said Alex Draganiuk.
“Upon achieving stabilization, we felt it was an opportune time to seek out long-term, non-recourse financing, particularly given the low interest rate environment,” said Lori Roth, senior managing director of finance at Ashley Capital. “Mission Capital led the process seamlessly and provided us with a menu of options. We had the opportunity to choose among quotes with different maturity dates, amortization schedules, pricing and other attractive features, including prepayment flexibility and the ability to upsize the loan in the future.”
Founded in 1984, Ashley Capital is one of the largest privately held real estate investment companies in the United States. Based in New York, the firm focuses on acquiring and repositioning office and industrial assets as well ground-up development. Their current portfolio includes over 26 million square feet of space throughout the eastern half of the US.
Mission Capital Advisors has arranged an $18 million non-recourse loan for Ashley Capital to refinance the Interchange Business Center
July 14, 2017
Mission Capital Advisors has arranged an $18 million non-recourse loan for Ashley Capital to refinance the Interchange Business Center, a 792,000-square-foot industrial property on a 55-acre site in La Vergne, Tennessee.
In 2014, New York City-based Ashley Capital purchased the property from Whirlpool, which had used the property to manufacture KitchenAid appliances. After acquiring the largely vacant property, Ashley Capital made large-scale renovations, replacing the roof, incorporating additional dock doors, upgrading the building’s heating and cooling, completing the construction of office spaces and repainting the entire property.
This repositioning, coupled with the property’s access to the area’s major freeways, enabled Ashley to attract numerous new tenants and bring the Interchange Business Center to full occupancy. Current tenants include Penske Logistics, Amer Sports Company, Singer Sewing Company and Fulfillment Supply Innovation.
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